Jack Adamo began self-educating himself in the ways of the stock
market in the early eighties while the economy was mired in
recession and inflation. Despite the prevailing negative environment
for equities, he soon saw that with his analytical nature and common
sense, he was better at judging investments than most market gurus
of the time.

Never one to do things half-way, Jack returned to college to
study accounting in order to better understand the intricacies of
corporate finance. He made the Dean's List and graduated Summa Cum
Lauda. He recalls with a smile that on more than one occasion, he
had to discretely take aside a professor to correct him on some
point of investment fact. Jack's years of experience had already
given him a post-graduate understanding of the ways of Wall Street.

Following The Insider Connection

Jack's career path clarified when he became interested in Insider
transactions through a chance encounter. After reading several
glowing broker recommendations of MCI stock, Jack noticed that MCI Insiders
had been dumping shares like crazy. After some investigation, he
learned that the company had just put on a "dog and pony"
show for stock analysts, where they spoke enthusiastically of the
company's prospects. Several months later, when the Insiders were
safely out of the stock, it took a big drop on a disappointing
quarterly performance.

With this sharp lesson serving as his inspiration, Jack visited
SEC offices in New York and Washington, D.C., and practically camped
out at the Rutgers University Law Library, to learn the intricacies
of the rules for reporting Insider transactions. He studied
published academic reports on the subject, and even did his own
statistical research on years of reported data.

Where It All Led

In 1992, the company that was eventually to become Insiders
Plus was formed. After successfully uncovering many profitable
Insider gems for his clients, Jack was invited to write a newsletter
on Insider transactions for the largest publisher of financial
newsletters in America. From the mailing of his first issue to the
mailing of his last issue, three-and-a-half years later, Jack's
recommendations showed an average gain of 30.9% for an average holding
period of 11.8 months.

With this success under his belt, Jack decided to publish Jack
Adamo's Insiders
Plus and Jack
Adamo's Option Income Advisor. While
following Insider transactions is still a substantial part of his
work, one of the main reasons Jack wanted to self-publish was so
that he could share his considerable investment skills in areas
besides Insider transactions. His new publications do so.

The widely expounded "Efficient Market Hypothesis"
states that you can't outperform the market because everyone gets
the same information at the same time. Jack has always known this
theory is deeply flawed. (Indeed, the original proponent of it has
repudiated it, but it is still taught.)

It is not the availability of information that determines
investment success, but the correct analysis and judgment of it. For
example, Jack recommended shares of IVAX Corporation in August of
1998 when conventional wisdom and virtually every Wall Street
analyst said stay away. Jack saw that the company was doing all the
right things to turn itself around and the heavy Insider buying
wasn't phony public relations buying, but the real thing based on
the profit motive. Jack's subscribers are enjoying a nearly 700%
profit in IVAX after 2 years.

Information without sound analysis and good judgment is just
noise.

Another flaw in the Efficient Market theory is the fact that
corporate Insiders get information before the public does, and they
get a chance to act on it first. By judiciously analyzing Insider
transactions, it is possible for experienced observers to get a
big jump on stock price movements.

Jack understands that buying a stock is buying a share of a
company. His valuation methods emphasize the analysis of company
fundamentals, as well as industry and economic trends. Transient
noise, like market sentiment, is given little weight. As the recent
fate of the dot com stocks shows, sentiment can evaporate suddenly,
and with gut-wrenching effect, when it is not based on sound
fundamentals.

But this can work both ways. Given that market sentiment is the
most volatile component of a stock's price, Jack takes advantage of
this to find opportunities when a specific stock, or a whole
industry is mis-assessed. His readers made over a 400% profit in
less than one year on his recommendation of Oracle Corporation after
a big, but short-lived price drop in early 1999.

Jack looks for companies whose intrinsic worth, based on their
earning ability, is not yet reflected in their stock price. This
worth is often unearthed by a company's price/earnings-to-growth
ratio, a measure that he pays a lot of attention to. (Read Jack's
article, THE DEEP LOGIC OF PEG
for more information on this very enlightening
subject. It may completely change the way you look at investing.)

In-depth analysis of financial statements, especially the cash
flow statement, is an important part of Jack's work. This type
of analysis is the one thing most investors aren't qualified to do.
Even professionals make horrendous mistakes by paying too little
attention to the cash flow statement. Jack's expertise here pays
dividends by avoiding debacles like Rite Aid. Despite heavy insider
buying reported in the financial press, Rite Aid was a textbook case
of Insider buying you should ignore, and cash flow statements you
should heed.

Constant monitoring and analysis of Insider transactions is
another important part of Jack's work. Though there are many
misleading signals today, there are still plenty of gems to be found
by those who know how to see through the fog. Gains
like IVAX Corporation's 700% rise after Jack's recommendation, Avid
Corporation's 104% gain in 4 months, and Winsloew Furniture's 94%
gain in the 21 months after Jack's recommendation, are all good
examples.

For many more recent examples, see An Introduction To Jack
Adamo's Insiders Plus on our homepage.